Work progressing on car dealership

Published
12:00 am CST, Wednesday, November 13, 2013

WOOD RIVER — A local car dealership is revving up to move, but it doesn’t intend to drive customers far toward its new location.

Work is under way on the new $6 million Jack Schmitt Chevrolet. The dealership purchased $1.7 million in property at the intersection of Illinois Route 143/Edwardsville Road and Wesley Avenue earlier this year.

The city offered $1 million in tax increment financing to assist the dealership with purchasing the 10.5 acres of land and installed new sewer and storm sewer lines on the property, adjacent to Shop ‘n Save.

“The infrastructure was completed about three weeks ago,” Mayor Fred Ufert said. “They have now started on the dealership.”

Ufert said the City Council wanted to do what it could to keep the dealership in town. He said the city would recoup the TIF funding in about 3 1/2 years.

He said the city receives about $280,000 in sales tax revenue annually and if the dealership had left town, there was no way to recover the loss.

“It’s quite a bit of sales tax revenue,” Ufert said.

The dealership started discussions two years ago about needing to either renovate its current location at 1401 Vaughn Road or relocate.

Dealership officials said General Motors started a program called Essential Brand Elements aimed at pumping money into older dealerships to enhance and modernize the looks of facilities.

Jack Schmitt purchased the Chevrolet dealership in 2008 from Albrecht-Hamlin. Facing increasing pressure in an industry hit hard by declining sales, General Motors Corp. urged the two dealerships to consolidate, which in turn prompted the decision for Albrecht-Hamlin to sell.

Upon purchasing the Wood River location, Schmitt closed its Collinsville Chevrolet dealership. The Wood River dealership has been located at its current 70,000-square foot facility since 1977.

Jack Schmitt opened his first Chevy dealership in 1959 in Nokomis, Ill. In 1997, Jack Schmitt was named one of the best automobile dealerships in the United States by Time magazine.

When the Essential program was first discussed, Tom Gerke, general manager of Jack Schmitt, said the dealership had three years left on its lease in December 2011. He said at the time he didn’t know what the dealership planned to do.

According to GM, any dealer willing to invest in renovating or relocating their showrooms to meet the new standards will receive quarterly incentives from the car company.

Soon after, the dealership contacted city officials and began discussing three acres of city-owned property along Route 143 near Illinois 255.

City Manager Jim Schneider said there wasn’t enough acreage for the dealership, so they began looking at other nearby land. He said 6.5 acres of land was needed.

“They liked the location along Route 143,” Schneider said. “Who can blame them with all the other dealerships located right there.”

In 2008, Auto Centers Nissan and Federico Chrysler-Dodge Inc. opened a $12 million auto mall complex at the intersection of Lakin Boulevard and East Edwardsville Road. Zeiser Kia Wood River opened its dealership adjacent to the auto mall January 2011.

Ufert said another municipality had been actively trying to woo the dealership away and he along with other City Council members were thrilled Jack Schmitt decided to stay.

“Not only are they staying in town, we’re told they’re likely bringing another dealership with them,” Ufert said.

Construction on the new dealership is expected to be complete sometime late spring or early summer.